Problem 1. Bengal, Inc. has the following amounts reported in its general ledger at December 31, 2019.

Organization costs P24,000

Trademarks 20,000

Bonds payable 35,000

Deposits with advertising agency for ads to promote goodwill of company 10,000

Excess of cost over fair value of net identifiable assets of acquired subsidiary 75,000

Cost of equipment acquired for research and development projects; the equipment has an alternative future use 90,000

Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years (all research phase) 70,000

Required:

a. On the basis of the information above, compute the total amount to be reported by Bengal for intangible assets on its statement of financial position at December 31, 2019. As noted, the equipment has alternative future use.

b. If an item is not to be included in intangible assets, explain its proper treatment for reporting purposes.

Problem 2. Presented below is selected information for Ragdoll Company.

1. Ragdoll purchased a patent from Vania Co. for P1,500,000 on January 1, 2017. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2027. During 2019, Ragdoll determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the statement of financial position for the patent, net of accumulated amortization, at December 31, 2019?

2. Ragdoll bought a franchise from Dougherty Co. on January 1, 2018, for P350,000. The carrying amount of the franchise on Dougherty's books on January 1, 2018, was P500,000. The franchise agreement had an estimated useful life of 30 years. Because Ragdoll must enter a competitive bidding at the end of 2027, it is unlikely that the franchise will be retained beyond 2027. What amount should be amortized for the year ended December 31, 2019?

3. On January 1, 2017, Ragdoll incurred organization costs of P275,000. What amount of organization expense should be reported in 2019?

4. Ragdoll purchased the license for distribution of a popular consumer product on January 1, 2019, for P150,000. It is expected that this product will generate cash flows for an indefinite period of time. The license has an initial term of 5 years but by paying a nominal fee, Ragdoll can renew the license indefinitely for successive 5-year terms. What amount should be amortized for the year ended December 31, 2019? Required Answer the questions asked about each of the factual situations.

Required

Answer the questions asked about each of the factual situations.

thank you for your help